DoD awards $749M contract for Digital System Resources to Digital System Resources, Inc
Contract Overview
Contract Amount: $74,895,262 ($74.9M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-07-25
End Date: 2008-09-30
Contract Duration: 1,894 days
Daily Burn Rate: $39.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: 200311!036138!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002403C5136 !A!N! !N! !20030725!20080724!153245857!116187758!001381284!N!DIGITAL SYSTEM RESOURCES, INC !12450 FAIR LAKES CIRCLE, S!FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAIRFAX (CITY) !VIRGINIA !+000001700000!N!N!000000000000!AC65!RDTE/ELECTRONICS & COMMUNICATION EQ-ENG/MANUF DEV !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !541512!E! !3! ! ! ! ! !99990909!B! ! !N!Z!C!N!R!1!001!N!5A!Z!Y!Z! ! !N!B!N!N! ! !Z! !A!A!000!D!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $74.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: 200311!036138!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002403C5136 !A!N! !N! !20030725!20080724!153245857!116187758!001381284!N!DIGITAL SYSTEM RESOURCES, INC !12450 FAIR LAKES CIRCLE, S!FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAIRF… Key points: 1. The contract value of $748,952,618.00 is substantial, indicating a significant investment in digital systems. 2. Competition was limited to 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting potential constraints or specific requirements. 3. The contract type 'COST PLUS AWARD FEE' introduces performance-based incentives but also carries inherent cost escalation risks. 4. The sector is Defense, specifically IT services related to Computer Systems Design, a critical area for national security.
Value Assessment
Rating: questionable
The contract value of $748,952,618.00 over 5 years (approx. $149.8M/year) for 'Computer Systems Design Services' appears high. Benchmarking against similar large-scale IT system development contracts is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that while open, certain sources were excluded, potentially limiting price discovery and competitive pressure.
Taxpayer Impact: The significant contract value suggests a substantial taxpayer investment, with the effectiveness of the competition method impacting the final price paid.
Public Impact
This contract supports the Naval Sea Systems Command, indicating a direct impact on naval technology and readiness. The duration of the contract (over 5 years) suggests a long-term need for these digital system resources. The award to Digital System Resources, Inc. highlights a key contractor in the defense IT sector. The 'COST PLUS AWARD FEE' structure means taxpayer funds are tied to performance metrics, requiring careful oversight.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method
- Cost Plus Award Fee contract type
- High contract value for IT services
Positive Signals
- Supports critical Naval Sea Systems Command needs
- Long contract duration indicates sustained requirement
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Defense IT spending is a significant portion of the federal budget, with benchmarks varying widely based on system complexity and criticality.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The primary contractor, Digital System Resources, Inc., is not identified as a small business in this record, suggesting limited direct participation for SMBs.
Oversight & Accountability
The 'COST PLUS AWARD FEE' contract type necessitates robust oversight to ensure performance targets are met and costs are managed effectively. The contracting agency is the Department of Defense, with oversight from the Defense Contract Management Agency.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPAF structure
- Limited competition may have reduced price competitiveness
- Lack of detailed performance metrics in public data
- Long contract duration increases long-term financial commitment risk
Tags
computer-systems-design-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $74.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. 200311!036138!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002403C5136 !A!N! !N! !20030725!20080724!153245857!116187758!001381284!N!DIGITAL SYSTEM RESOURCES, INC !12450 FAIR LAKES CIRCLE, S!FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAIRFAX (CITY) !VIRGINIA !+000001700000!N!N!000000000000!AC65!RDTE/ELECTRONICS & COMMUNICATION EQ-ENG/MANUF DEV !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !541512!E! !3! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS MISSION SYSTEMS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $74.9 million.
What is the period of performance?
Start: 2003-07-25. End: 2008-09-30.
What specific digital system resources were procured, and how do they align with current naval technological needs?
The contract details 'DIGITAL SYSTEM RESOURCES, INC' and the PSC code '541512' (Computer Systems Design Services). While the specific resources are not detailed, they likely pertain to the design, development, integration, or maintenance of complex digital systems for naval applications, potentially including command and control, communication, or data processing systems critical for fleet operations.
What were the key criteria for excluding other sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process?
Exclusion of sources typically occurs when only one or a limited number of responsible sources can meet the government's needs due to factors like unique capabilities, proprietary technology, or urgent requirements. For this contract, the specific reasons for exclusion are not detailed but would likely relate to specialized expertise or existing system integration requirements that only Digital System Resources, Inc. could fulfill at the time of solicitation.
How effectively did the 'COST PLUS AWARD FEE' structure incentivize performance and control costs over the contract's duration?
The effectiveness of a Cost Plus Award Fee (CPAF) contract hinges on well-defined performance metrics and objective evaluation criteria for the award fee. Without access to performance reports and final award fee determinations, it's difficult to assess effectiveness. However, CPAF contracts aim to balance contractor incentive with government flexibility, but they require diligent oversight to prevent cost overruns and ensure value for taxpayer money.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 12450 FAIR LAKES CIR STE 800, FAIRFAX, VA, 22033
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2003-07-25
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2018-02-06
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